Short Term Buy Signal

...Friday is quadrouple expiration. It has a history of volatility. I also
believe that bottoms can align with expirations. So be cautious of one more
washout before this bottom is in. But it shouldn't be today. We should see
an up day today based on this short term buy signal.

Sorry for the delay this morning. I'd like to say that it's because I was
doing more studying of the markets, but it more has to do with a little excessive
celebration for my Boston Bruins last night.

Let's look at the global markets.

On the economic front, here is the schedule for this week.

On to the charts:

Stock Barometer Analysis

We remain in Buy Mode. The retest was a bit more than I expected, but it's
all good, as there was some evidence of capitulation.

The Stock Barometer is my proprietary market timing system. The direction,
slope and level of the Stock Barometer determine our outlook. For example,
if the barometer line is moving down, we are in Sell Mode. A Buy or Sell
Signal is triggered when the indicator clearly changes direction. Trend
and support can override the barometer signals.

Money Management & Stops

To trade this system, there are a few things you need to know and address
to control your risk:

This system targets intermediate term moves, of which even in the best
years, there are usually only up to 7 profitable intermediate term moves.
The rest of the year will be consolidating moves where this system will
experience small losses and gains that offset each other.

This system will usually result in losing trades more than 50% of the
time, even in our best years. The key is being positioned properly for
longer term moves when they come.

Therefore it is vitally important that you apply some form of money
management to protect your capital.

Trading a leveraged index fund will result in more risk, since you cannot
set stops and you cannot get out intraday.

Accordingly;

Make sure you set your stops so that you can lose no more than 2% per
trade (based on the QQQQ if you're trading leveraged funds and options
with our trading service).

Potential Cycle Reversal Dates

I now am looking past 6/24 as a top. I'm guessing we'll see a top later in
July. More on this later.

My Additional timing work is based on numerous cycles and has resulted
in the above potential reversal dates. These are not to be confused with
the barometer signals or cycle times. However, due to their past accuracy
I post the dates here.

Timing Indicators

Use the following Timing/momentum indicators to assist in
your trading of the QQQQ, GLD, USD, USO and TLT. They are tuned to deliver
signals in line with the Stock Barometer and we use them only in determining
our overall outlook for the market and for pinpointing market reversals.
The level, direction, and position to the zero line are keys in these indicators.
For example, direction determines mode and a buy signal 'above zero' is more
bullish than a buy signal 'below zero'.

QQQQ Timing Indicator (NASDAQ:QQQQ)

The QQQQ Spread Indicator will yield its own buy and sell signals that
may be different from the Stock Barometer. It's meant to give us an idea
of the next turn in the market.

Gold Timing Indicator (AMEX:GLD)

Want to trade Gold? Use our signals with the Gold ETF AMEX:GLD. Gold gives
us a general gage to the overall health of the US Economy and the markets.

US Dollar Index Timing Indicator (INDEX:DXY)

Want to trade the US Dollar? Use our signals with the Power Shares AMEX:UUP:
US Dollar Index Bullish Fund and AMEX:UDN: US Dollar Index Bearish Fund.

Bonds Timing Indicator (AMEX:TLT)

Want to trade Bonds? Use our signals with Lehman?s 20 year ETF AMEX:TLT.
The direction of bonds has an impact on the stock market. Normally, as bonds
go down, stocks will go up and as bonds go up, stocks will go down.

OIL Timing Indicator (AMEX:USO)

Want to trade OIL? Use our signals with AMEX:USO, the OIL ETF. We look
at the price of oil as its level and direction has an impact on the stock
market.

Secondary Stock Market Timing Indicator

We daily monitor hundreds of popular and proprietary technical indicators
that break down market internals, sentiment and money flow to give us unique
insight into the market. We feature at least one here each day in support
of our current outlook. As an annual subscriber to any of our services, you
will get access to all our charts and research.

Daily Stock Market Outlook

We remain in Buy Mode - continuing to look for a bounce into the end of July.

The market is like a rubber band. When the market sells off like this, it's
like trying to hold a resistance band at it's extreme. Eventually you will
have to let goo and let the markets push back. This should result in a bounce
- and a mighty one at that.

It doesn't mean the selling is done. It just means we'll see a bounce to release
the energy. After that energy is released, we'll reevaluate.

Markets need a catalyst.

Here's another chart:

As a relatively new instrument, we've noticed a periodic alignment with stock
market bottoms and extreme vix call buying. We're near that level now.

And finally, here's Bill West's ETF Trading Site. Bill is a commodity trader
and focuses on commodity, currency
and market ETFs. Click here to check it out. I'll post his latest commentary
up there later today.

If you're looking for more information, please visit our blog - I'll have
updates and publish other articles there. http://investmentresearchgroup.com/Blog/ I've
been laying out an oil short trade for a while now. Oil should bounce in the
short term but longer term, I see it setting up to head lower.

Stock Barometer is completely independent. We have never and will
not ever accept compensation from any company whose stock we recommend.

Our goal is to make you money. We offer you the tools and information to
do so and leave it to you, the individual investor, to apply them in the best
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trading have large potential rewards, but also large potential risk. You must
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